Technology review 2010: Controlling fraud - payment cards

Also in this section: Controlling fraud - payment cards Controlling fraud - Digital Indentities Minimizing reputational risk Improving connectivity Automating bank relationship management Treasury Management - Efficiency and compliance Treasury Management - In-house versus ASP and SaaS solutions

The banks and payment card companies continue to combat constantly mutating fraud. Almost as soon as one source is eradicated, another appears. Many different techniques and technologies are being used, including chip and PIN, obligatory pre-notification of international travel, transaction alerts and dynamic one-time authentication passwords. One of the latest is the real-time scoring of payment authorization requests. This new service from VISA Europe, due to go live in April, uses neural networks and predictive technologies from Fico to estimate in real time the likelihood of fraud in each authorization request. The scoring is based on the visibility of all cross-border and other card payments on the VISA network and fraud data supplied by VISA member banks. This new development is expected to reduce considerably the unnecessary decline of genuine card-not-present and cross-border payment card transactions.